Question -
1) Why does a corporation require common shares and a sole proprietorship does not? Explain fully and provide an example to illustrate your explanation.
2) What is the purpose of a petty cash fund? How does it operate? What types of controls should be in place to safeguard these funds?
3) A company incurred a net loss of $250,000. Does that mean the business lost $250,000 of cash? Explain.
4) What are adjustments, when are they journalized, and why? What principals or characteristics are involved?